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High-definition TV services are the new
battlefield for pay-TV operators in their attempt to win over high-spending
customers early next year.
Now Broadband TV, the pay-TV unit of PCCW, is set to launch a HDTV service after
a year of preparation, targeting the high-income group of its subscriber base
and those of its competitors.
But the high-end service may not come at a higher price for customers.
``We will launch HDTV early next year, but it doesn't mean we will raise the
tariff in offering the upgraded service,'' deputy chairman Jack So said.
``We will also subsidize the price of the new set-top box used to get HDTV,'' he
said.
PCCW customers are spending about an average of HK$110 for monthly pay-TV
services, compared to HK$70 a year ago. The proportion of paying subscribers
has also improved, to 61 percent at the end of June from 20 percent in 2003. It
has 441,000 pay-TV subscribers, compared with 361,000 at the end of last year.
``HDTV, with its high-color resolution, is an effective way to attract high-end
customers,'' said So. ``We expect the introduction of [HDTV] to help broaden
our customer base.''
HDTV has the sharpest images on TV and allows certain sets to show several
channels at once. So said customers only need to buy a plasma or LCD TV to
enjoy the upgraded service.
``No extra programming cost will be added to our projections.''
So said some channel providers, such as ESPN and National Geographic's Discovery
Channel, now have content suitable for HDTV.
He said the sets will become more commonplace now prices of plasma and LCD TVs
have dropped.
So said 80 percent of PCCW's network is equipped to handle an eight megabits per
second broadband service while transmission speeds of five Mbps are available
for the rest. ``Around 4.5 Mbps will be used for HDTV while the remaining 3.5
Mbps could be used to normal broadband service,'' So added.
PCCW's plans is set to put it in direct competition with Galaxy Satellite
Broadcasting. Backed by Television Broadcasts, the smallest of Hong Kong's four
pay-television operators, Galaxy said it plans to launch its HDTV service early
next year.
``When the programs are available, we will launch the service as fast as we
can,''a Galaxy source said.
i-Cable Communications, the largest pay-TV operator, has no plans to launch the
service. ``We don't see any uniqueness in HDTV programming,'' chief executive
Stephen Ng said.
kc.wong@singtaonewscorp.com
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